Thursday, May 26, 2016
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
New Toshiba 8TB X300 Hard Disk Drive Released
Microsoft Says Users Can Still Deny Windows 10 Upgrade
Apple Looking Into Charging Stations For Electric Cars: report
Google To Open Self-driving Car Engineering center in Michigan
AMD Introduces the FirePro S7100X Hardware-Virtualized GPU for Blade Servers
Europe Proposes New E-commerce Rules
HP Enterprise to Merge IT Services Unit With Computer Sciences
Samsung Introduces Galaxy Tab Iris Equipped with Iris Recognition Technology
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > Optical Storage > Microso...
Last 7 Days News : SU MO TU WE TH FR SA All News

Saturday, March 10, 2001
Microsoft declines comment on Xbox profitability


Microsoft on Friday declined to address a recent report that it would take five years to reach profitability with its new Xbox video game console, saying the forecast by Merrill Lynch was based on assumptions that were the brokerage's own.



``That forecast was based on information and targets that have not been shared with the public,'' said John O'Rourke, director of games marketing. He declined to comment on Microsoft's projected profitability.

Earlier in the week Merrill Lynch analyst Henry Blodget predicted the Xbox console would lose $2 billion before breaking even in about five years. In a report the brokerage calculated the Xbox would cost Microsoft $380 each to make, and would sell for close to $299, the price of Sony's rival PlayStation 2 console. Accounting for the retail margin, Microsoft was projected to lose about $130 for each Xbox sold.

While analysts have noted that console developers generally lose money on the hardware and profit on software and peripheral sales and licensing fees, the forecast for losses did raise some eyebrows.

O'Rourke said the marketing costs for the launch of the new video game platform will total some $500 million, and that about 1,000 employees were working in the Xbox division.
The Xbox, scheduled for launch this fall, is aiming to attract the same core video game fan base of teenage boys that Sonytargeted with its PlayStation 2, launched in the United States last fall.

PlayStation 2 sold some 1 million units in the United States after its first three months, limited by a shortage of components.

The Xbox incorporates a Broadband high-speed Internet connection, but requires consumers to purchase a peripheral to play DVD movies. In contrast, the sequel to the popular PlayStation console has a DVD player in the console, but consumers must buy an attachment to access the Internet.


Previous
Next
Iomega to display Peerless drive        All News        Seven firms tune up DVD+RW format products
Iomega to display Peerless drive     Optical Storage News      Iomega to display Peerless drive

Source Link Get RSS feed Easy Print E-Mail this Message

Related News
Microsoft Streamlines its Smartphone Business, Axes Hundrends Of Jobs
Microsoft To Accelerate Delivery of Affordable Internet Access
Microsoft Is Selling Its Feature Phone Business to Foxconn, Nokia Mobiles Return
Microsoft Positions Windows 10 As A Platform for the Intelligence Revolution
Microsoft, Google Drop Complaints Against Each Other
Microsoft Reports Profit But Windows Business Keeps Declining
Microsoft Discontinues The Xbox 360
PlayStation 4 Continues To Outsell The Xbox One
Microsoft Sues U.S. Government Over Data Requests
Microsoft's Edge Browser To Limit Flash Support
Toyota, Microsoft To Work Together On Connected Technologies
Build 2016: Microsoft Announces Cloud Services, Developer Tools

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2016 - All rights reserved -
Privacy policy - Contact Us .